March 27, 2024
Mixin Network Offers $20M Bounty for $200M Hack
Latest Cryptocurrency News

Mixin Network Offers $20M Bounty for $200M Hack

Mixin Network, a decentralized cross-chain protocol, has reached out to the hacker responsible for a $200 million exploit on September 23rd, offering a $20 million bug bounty for the return of the remaining funds. The message to the exploiter was encrypted within the transaction, appealing for the funds’ return, especially since most of the stolen assets belonged to users.

Mixin Network officially confirmed the exploit on September 25th, attributing it to a breach of a third-party cloud service provider, resulting in the loss of nearly $200 million in platform assets.

“Most of our platform assets were users, and we hope you can refund them. You can keep $20M of the assets as a BUG Bounty Reward for the BUG.”

Mixin’s founder, Feng Xiaodong, pledged to reimburse affected users up to 50%, with the remainder provided in bond tokens, which the company would subsequently repurchase with its earnings.

While Mixin has not disclosed all the details surrounding the exploit, an on-chain analytics platform highlighted the hacker’s prior interactions with Mixin Network, including the reception of funds from Mixin in 2022.

The exact method by which the exploiters managed to steal $200 million worth of assets through a data breach remains unclear. Nevertheless, cross-chain protocols in the decentralized finance (DeFi) sector have been frequent targets of significant crypto exploits. Reports suggest that over half of all DeFi exploits occur within cross-chain protocols, resulting in losses exceeding $2.5 billion.

Cross-chain protocols facilitate interoperability between different blockchain networks, enabling the transfer of assets from one blockchain to another. Consequently, these protocols often hold substantial assets from various chains, making them susceptible to such exploitations.

Image by rawpixel.com on Freepik

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